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CUCFA’s Letter Calling on Regents to Maintain the Employer Contribution Floor for Retiree Health

July 6, 2017

Regent Makarechian
Chair, Finance and Capital Strategies Committee
Office of the Secretary and Chief of Staff to the Regents
1111 Franklin St.12th floor
Oakland, CA 94607

Mailed electronically to regentsoffice@ucop.edu for further distribution.

Dear Regent Makarechian,

We urge you to vote against the proposal to rescind the 70% floor for UC’s contribution to retiree health benefits, as proposed in item F7 of the Finance and Capital Strategies Committee meeting to be held Wednesday, July 12.

This issue is being brought to the Regents as an action item without previous discussion either at the Regents or with employees, including faculty. We have seen no cost models and have not been informed as to the impact this change will have on employee benefits in the near, or distant future. While unionized employees may have an opportunity to negotiate this cut in benefits, this one meeting with the Regents is likely the only opportunity non-represented units have to put a stop to this impetuous action.

It is important that UC continue to offer a competitive benefit package to prospective employees, and that UC be seen to treat all employees compassionately and fairly. It is our belief that the proposed change will have a greater effect on employee morale than on UC’s finances.

Please direct the Office of the President that, if similar proposals are considered at some future date, UCOP prepare estimates regarding the benefits to UC and the costs to employees and present this information to employees in advance of proposing such a change for a vote of the Regents.

Sincerely,
Michael Burawoy,
Vice President of External Relations,
Council of UC Faculty Associations

cc: Members of the committee: Regents Blum, Lemus, Sherman (Vice Chair), Varner, and Zettel; Ex officio members Brown, Kieffer, Napolitano, and Rendon; Advisory member White; Chancellors Blumenthal, Gillman, Hawgood, and Khosla, and Interim Chancellor Hexter.

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